Figure 8-19

Figure 8-19. The figure represents the relationship between the size of a tax and the tax revenue raised by that tax.

-Refer to Figure 8-19.According to a recent research paper published by the European Central Bank,the U.S.

A) is more likely at a point such as point A rather than point B if the tax in question is the tax on capital income.
B) is more likely at a point such as point B rather than point A if the tax in question is the tax on labor income.
C) could increase tax revenues more by raising taxes on capital income than by raising taxes on labor income.
D) All of the above are correct.